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Hot Issues
Part 1 – Budget reminders. Under the Hood.
Part 2 – Budget reminders. Under the Hood.
Part 3 – Budget reminders. Under the Hood.
Comprehensive list of COVID-19 initiatives and packages.
Businesses not meeting obligations warned as ATO restarts compliance programs
Employers cautioned over ‘hard and fast’ decline in turnover eligibility
‘Follow the spirt of the law’, warns ATO
$120m in JobKeeper clawed back by ATO, new compliance areas highlighted
Budget 2020 - A very comprehensive break down.
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Budget 2020 - At a Glance, Overview, Outlook
Temporary home office expenses shortcut extended again
JobKeeper extension – changes implemented
JobKeeper Participants – are “workers”
Commissioner registers updated JobKeeper alternative tests
Varying Pay As You Go (PAYG) Instalments
Reminder of Medicare Levy Surcharge (MLS)
September update of latest COVID-19 initiatives.
ATO JobKeeper 2.0 guidance surfaces
Expats Return to Australia – Travel Expenses
Profession to be relied on for post-JobKeeper turnover certificates
Update of Superannuation contribution rules from July 1, 2020
Expats & COVID-19 Impacts on tax residency
Economic recovery could be slower than anticipated: RBA
High Court rules in favour of employers on personal leave accruals
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Year End Tax Deductions – “equipment”

As retailers promote heavily for taxpayers to buy before year end, are their advertisements real or imaginary?



       


If a retailer promotes a TV for a 40% discount at $2,500 with the slogan “eligible taxpayers will get a tax deduction”, is that real and should I be tempted?


If you have just begun working from home instead of the work office, as an employee you should ask “can I claim the $2,500?”


Short answer - No.


Home office work related expenses rules will allow depreciation of the non-private portion if there is a connection with employment.  A reasonable question would be – why do you need a $2500 TV screen compared to a $150 screen or a notebook?  Whilst the quantum is not the test, it goes to the credibility of the connection with employment.


If you can make the connection, the depreciation claim may be 20% of the cost for the remaining days to the end of the year.   At a marginal tax rate of 30% the benefit is minor. 


The justification for buying any equipment should firstly be economic, with tax benefit secondary


An alternate question may be – “why can’t I benefit from the instant asset write off that is constantly reported and advertised?


This relates to small business entities who probably don’t care about a tax deduction right now – they only care about staying in business.  For most small business, tax deductions can help but the economic benefit of any expenditure is the first rule.


 


 


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18th-July-2020